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SOC 2 Compliance: What Software Buyers Need to Know

SOC 2 is the gold standard for software vendor security. But not all SOC 2 reports are equal — here's what to look for before you sign.

By The StackMatch Research Team

SOC 2 certification costs vendors $50K-$100K annually to maintain — but 40% of buyers never read the actual report

40%of buyers never read the SOC 2 report
$50K-$100Kannual cost to maintain SOC 2
12months minimum for Type II audit period

A buyer's guide to SOC 2 — what the audit covers, why it matters, and how to verify that a vendor's certification is current and relevant.

40%
of buyers never read the SOC 2 report
SOC 2 is a valuable certification, but only if you actually review what it covers.

SOC 2 comes in two types: Type I reports on design at a point in time, and Type II reports on operating effectiveness over a period.

SOC 2 review checklist

  • Request the full SOC 2 report, not just the certificate
  • Verify it is a SOC 2 Type II report (not just Type I)
  • Review the control areas covered in the report
  • Check for any exceptions or findings in the report

SOC 2 costs vendors $50K-$100K annually to maintain, but 40% of buyers never read the actual report.

SOC 2 is the most widely accepted security audit for SaaS vendors. But not all SOC 2 reports are equal — Type I vs Type II, scope, and recency all matter.

Type I vs Type II explained

SOC 2 report types

  • Type I: Point-in-time audit — controls are designed correctly at a single moment
  • Type II: Operational audit — controls operated effectively over 3-12 months
  • Type II is what buyers should request. Type I proves intent; Type II proves execution.
  • Some vendors add ISO 27001 or HIPAA mappings for buyers in regulated industries
12-18
months typical SOC 2 Type II audit cycle
A full Type II audit takes 12-18 months including the observation period. Any vendor claiming SOC 2 Type II in less than 12 months should be questioned.

The five trust criteria are: Security (the mandatory category), Availability, Confidentiality, Processing Integrity, and Privacy. Most vendors report only on Security. Each additional category adds audit scope and cost.

A SOC 2 report that's more than 12 months old tells you about last year's controls, not today's. Always request the most recent report and verify the audit period covers the last 12 months.

Reading a SOC 2 report requires understanding what's in scope. A report that excludes your data type or the specific controls you need isn't providing the assurance you think it is.

What to look for in the report

SOC 2 report evaluation

CriterionWhat to verify
Report dateWithin 12 months
Audit periodAt least 6 months
Trust criteria coveredSecurity + relevant others
ScopeIncludes your data/services
ExceptionsFewer than 3 material
3
minimum trust criteria to demand in SOC 2 reports
Security is mandatory. For most SMB buyers, also requiring Availability and Confidentiality covers 90% of risk scenarios.

A buyer's guide to SOC 2 — what the audit covers, why it matters, and how to verify that a vendor's certification is current and relevant.

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The five trust criteria

SOC 2 audits evaluate five Trust Service Criteria: Security (mandatory), Availability, Processing Integrity, Confidentiality, and Privacy. Not all vendors audit against all five — most stop at Security + Availability. If you handle sensitive data, request reports that include Confidentiality and Privacy. If uptime is critical, verify that Availability is included and that the vendor meets your SLA requirements.

How to verify a SOC 2 report

Ask for the vendor's SOC 2 Type II report under NDA — most will provide a summary letter or the full report after signing. Check the audit period: reports older than 12 months may indicate the vendor isn't maintaining compliance. Review the exceptions: every SOC 2 report includes 'exceptions' or 'findings' where controls didn't operate perfectly. A few minor exceptions are normal; repeated failures in the same area are a red flag.

SOC 2 is the gold standard for software vendor security. But not all SOC 2 reports are equal — here's what to look for before you sign.

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